2007 Best Practices Study
Agencies with Revenues between $10,000,000 and $25,000,000
 
   
 

Rev. % By Source  |  Services/Other Products Provided/Aquisition Info  |  Rev. Growth By Source:  P&C  L&H  Total  | Future Rev. Growth Strategies

Revenues
Services/Other Products Provided (% of Agencies Providing)
  Average +25% Profit +25% Growth
Loss Control/Engineering 66.7% 80.0% 50.0%
Worker's Comp Claims Adjusting/Admin (TPA) 14.8% 20.0% 0.0%
Group Health Ins Claims Adjusting/Admin (TPA) 7.4% 20.0% 0.0%
Self Insurance Programs 37.0% 20.0% 16.7%
Risk Management Consulting 74.1% 80.0% 66.7%
Premium Financing (in-house vs. 3rd party) 33.3% 20.0% 16.7%
Pension/Profit Sharing/401K 55.6% 40.0% 33.3%
Human Resource Consulting 48.1% 40.0% 50.0%
Employee Leasing Products & Services (PEOs) 18.5% 20.0% 16.7%
Investment Products (Securities, Stocks) 22.2% 20.0% 33.3%
Other* 7.4% 0.0% 33.3%
Acquired Revenues
  % of Agencies Acquiring Average Commissions Acquired % of
Net Revenues
Acquisitions Made in Last 12 Months 13.3% $464,940 4.1%

 

What the Typical Transactions Looked Like
Revenues Acquired per Transaction
Average $407,206
High $790,000
Low $49,853
Multiples of Revenue Paid
Average 1.32x
High 1.90x
Low 1.00x

 

 
     
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